World Bank Gives Update On The Global Decline In Remittances

The World Bank has given update on remittance flows to low and middle-income countries. According to the global bank remittances are projected to fall by 7%, to $508 billion in 2020, and decline by 7.5% to $470 billion in 2021.

The World Bank stated that the importance of remittances as a source of external financing for low and middle-income countries is expected to increase in 2020, even with the expected decline.

Remittance flows to low and middle income countries reached $548 billion in 2019, larger than foreign direct investment flows of $534 billion and overseas development assistance of about $166 billion.

According to the World Bank, the stock of international migrants is likely to decline as new migration has slowed and return migration has increased.

The global average cost of sending $200 was 6.8% in the third quarter of 2020. This doubles the Sustainable Development Goal target of 3% by 2030.

The World Bank this stated that there is need to improve relevant data collection systems, as the crisis has exposed significant data gaps that have prevented real time monitoring of remittance flows and migratory movements.